5 POLE RESULTS TODAY. ASSAM A POSSIBLE GAME CHANGER
EM currencies weakened, while Crude and Industrial metals traded weak as Fed Minutes offer strongest hint at June hike.
Fed Minutes emerged as a jolt for the markets which had turned complacent amid uncertainty related to Fed Interest rate intentions. Reinvigorated speculation over timing of Fed rate hike comes just ahead of G7 FM meet later this wk where Japan is xptd to push for further fiscal spend to reignite tepid economic growth.
Oil extended drop as unexpected stockpile gains expanded US glut. Lcl mkt ended 2D gain ystrdy with Autos dragging the benchmark lower. PNB reported Q4 loss – highest by an Indian Bank ever. Results to 5 key states/UT r due tdy which wl influence the market direction.
They A/c for 51 seats(21%) of RS. Best case scenario implied by exit poll indicate to a 7 seat swing in favour for BJP. 54 seats r @ stake in RS nxt yr. NDA wl then be 3Y into 5Y term with much of the political capital already spent making today’s result crucial.
Separately India is said to be planning stricter rules for offshore holders of India Derivatives. SEBI is xptd to meet later today to take up P Note rules. Nifty on SGX dropped in early mng trades indicating weakness to prevail at the mkt start.
Quote for the Day :
“I am focusing on increasing demand and transforming hydro & wind sectors, which for their own folly, have gone down” – Piyush Goyal, Power Minister
Focus for the Day
Japan All Industry activity Index
Eurozone current account balance
U.S. Jobless claims
Earning season:
PNB reports Q4 loss of Rs 53.7 bn, biggest in Indian banking history. Provisions shot up to Rs 113.8 bn following a surge in GNPA to Rs 558.2 bn in Q4FY16 from Rs 343.4 bn as on Q3FY16.
GNPAs rose significantly to 12.9% as on Q4FY16, from 8.47% in Q3FY16.
Net NPAs also surged from 5.9% to 8.61% QoQ. The point of worry is that the bank believes the cleaning up exercise of balance sheet is not over. One shall avoid the stock.
Lupin Pat (E) Rs. 6.87 bn; Pidilite Pat (E) Rs.1.27 bn; Sobha Pat (E) Rs 431 mn, Wabco Pat (E) Rs 562 mn, etc.
Key corporate developments/policy actions:
Castrol Ltd. offers to sell 34.6m shares of Castrol India at INR355-385.25 each
Maruti Suzuki says mileage issue doesn’t affect products sold outside Japan
Tata Motors says LIC of India raises stake in co. to 7.01% from 4.91%
Allcargo to buy majority in CCI logistics for Rs 1.3 bn – LT OW
3 more PSU banks may be asked to merge with bigger peers including UCO bank, BOI & IOB - AVOID
As per media reports, JSW Steel in talks with Sandur for iron ore supply
Bayer puts Mallya on notice over debt row
Indian Hotels to explore Taj Boston sale for at least $125m
As per media reports, Bayer makes preliminary offer to buy Monsanto
Parag Milk Foods shrs listing on NSE/BSE. Co. sold shares at Rs 215 each after IPO got ~183% demand - AVOID
Fund Flow:
FII: (-)Rs.2.51bn DII : (+)Rs.2.40bn
Stocks to focus :
Large Cap : Britannia,Maruti, HDFC Bank, Kotak Mahindra Bank, Wabco, Bajaj Finance
